Beatrice Public Schools to Lose $355k in Special Education Funds (NE)

June 14, 2011

B eatrice Public Schools will reimburse the Nebraska Department of Education $355,636 over the next three years after an audit by the department determined the district had overclaimed its allocated amount in special education reimbursements.

Superintendent Dr. Jon Lopez said the district discovered some uncommon budget practices when it was compiling its 2011-2012 budget earlier this year.

After discovering the budget abnormalities, BPS contacted the Nebraska Department of Education in early April 2011 to audit special education reimbursements during the 2007-2008, 2008-2009 and 2009-2010 school years, according to a press release from the district.

“We asked for the audit to clarify how the district should be reporting such expenditures because our current practices are not consistent with what may have been done under past administration,” the press release said.

On May 3-4, NDE performed a financial audit for those years in the areas of “Para Professional Salaries and Benefits, Instructional Equipment and Maintenance Costs, Instructional Services from ESU 5, as well as Vehicle and Transportation costs.”

Each of the audited areas fell under the special education budget.

The audit determined that the district overclaimed $355,636 in special education reimbursements during the 2007-2008, 2008-2009 and 2009-2010 school years.

“The Beatrice Public Schools has made an agreement with the NDE to reimburse this overclaimed amount over a period of three years with the first reimbursement to begin in June of 2011,” the press release said. The remaining balance would be paid back in 2012 and 2013.

Board member Jim Spangler asked if Lopez was confident that no current member of the staff was aware of the situation, which Lopez replied affirmatively.

Lopez explained the state would not disperse approximately one-third of the owed amount each year to cover the balance. No penalty or interest will be charged on the payments.

“We won’t actually be paying the department of education,” Lopez said. “The reimbursement will come in the form of future reimbursements that the district would have received for special education, so they will deduct essentially what amounts to about a third.”

The press release states the audit found the district’s current practices to to “appropriate.”

“Moving forward, these appropriate practices will continue to be employed,” the release stated.